Profiles of Today's Homebuyers
and Homesellers - 2019

Today’s
Homebuyer and Home Purchaser Profiles for 2019

Are you thinking about selling your home in 2019? If so, the market
has shifted dramatically over the past several years. It is totally
different than it was years ago. Today’s buyers are not apt
to want to spend a lot to time and money to fix up and or rehab a
house as they were in the past. Why? Because today’s home buyers
are more in debt and are more time challenged than years ago. They
are looking at things from a return on their investment of time and
money. Today’s buyers are looking for homes that are in move-in
condition. For today’s sellers this is important to understand.
If a sellers home is not updated and in move in condition, then it
needs to be priced commensurate with the upgrades that will be needed
from a buyer perspective. In other words, the listed home selling
price must be discounted to reflect the amount of time and money a
home buyer will need to put into the house and also factor in that
today’s buyers simply do not want to do the work that may be
needed. Properly pricing a home to meet today’s buyer needs
are desires is one of the most important considerations that a home
seller should consider.

With this said, with the help of our friends at the National Association
of Realtors, we’d like to share with you important profiles
of today’s buyers. We are sharing this information with you
with a keen eye on looking at things from various generational buyers
perspective.

This is part of an on-going series of real estate articles by Nick
Santoro and Joe Santoro of Personal Property Managers who service
Pennsylvania and New Jersey and specialize in real estate, home content
downsizing, senior transition services, property management and estate
sales.

Home Buyer Profiles for 2018:

• The millennial generation is defined
as those who are 36 years old and younger.
• Generation X is 37 to 51
• Younger Boomers are 52 to 61.
• Older Boomers are 62 to 70
• the Silent Generation are aged 71
to 91.

Buyers 36 years old and younger made up the largest generation of
homebuyers in 2016 at 34%.

Millennial buyers (age 36 years and younger)
represent 66% or 2/3 of today’s buyers and were first-time buyers.
Over one quarter or 28% of today’s buyers were Gen X buyers
(age 37 to 51). So, 92% of today’s buyers were Millennials or
Gen X’ers….

In 2016, the majority of recent homebuyers were married couples,
and buyers 37 to 51 had the highest median household income at $106,600

Buyers 37 to 51 (Gen Xers), consists of
28% of recent homebuyers. They are consistent with their buying trends
and demographics. Notably, they are also the most racially and ethnically
diverse population of homebuyers, with 21% identifying they are a
race other than White/Caucasian. Buyers 37 to 51 are in their peak
earning years and thus their incomes are the highest among all generations
of buyer types at $106,600. They are both the generation most likely
to be married and most likely to have children under the age of 18
in their home. Their housing preferences are driven by these demographics.
Buyers 37 to 51 have the highest median priced homes of all other
buyers and buy the largest homes in median square footage and bedrooms.
Their neighborhood choices are driven by their convenience to job,
but also the quality and convenience of school districts.

Buyers 52 to 61 (Younger Baby Boomers) and
buyers 62 to 70 (Older Baby Boomers) were broken into two separate
categories as they have differing demographics and buying behaviors.
Buyers 52 to 61 consist of 16% of recent buyers and buyers 62 to 70
consist of 14% of recent buyers. Buyers 52 to 61 have higher median
household incomes and are more likely to have children under the age
of 18 in their home. Buyers 52 to 61 are also more likely to buy a
multi-generational home. As the sandwich generation, they are nearly
equally likely to buy this type of home for both children over 18
living at home and caretaking for aging parents. Buyers 52 to 61 buy
for an array of reasons such as a job-relocation, desire for a smaller
home, and the desire to be closer to friends and family. Buyers 52
to 61 also project the length of time they will live in their home
is the longest at 20 years. Buyers 62 to 70 are often moving due to
retirement, desire to be closer to friends and family, and desire
for a smaller home. Buyers 62 to 70 typically move the longest distance
at a median of 25 miles and are least likely to make compromises on
their home purchase.

Characteristics of Homes Purchased

Buyers of new homes made up 14% and buyers of previously owned homes
made up 86%. For buyers 36 years and younger, 11% bought new homes
again this year. New home purchased increased with age, 15% for buyers
37 to 51 years and 21% for those 71 to 91 years.

Most recent buyers who purchased new homes were looking to avoid renovations
and problems with plumbing or electricity at 34%. Buyers who purchased
previously owned homes were most often considering a better price
at 32%. For buyers 36 years and younger, 48% bought new homes to avoid
renovations and problems compared to 18% of buyers 71 years and older.
35% of buyers 62 to 70 years bought previously owned homes to receive
a better overall value.

The most common type of home purchased continues to be the detached
single-family home, which made up 83% of all homes purchased compared
to 87% of buyers 37 to 51 years and only 65% for buyers 71 years and
older.

Senior-related housing increased slightly this year to 14% of buyers
over the age of 50; that number was 7% for buyers 52 to 61 years and
24% for buyers 71 years and older.

The typical home that was recently purchased was 1,900 square feet,
had three bedrooms and two bathrooms, and was built in 1991. The size
of homes purchased by buyers aged 37 to 51 years old was typically
larger homes at 2,100 square feet, compared to buyers 36 years and
younger, and for buyers aged 71 years and older, they purchased homes
at a median of 1,800 square feet. For buyers 36 years and younger,
the median home that was purchased was built in 1984; for ages 62
to 70, the median home that was purchased was built in 1998. For homebuyers
over 71, the median home that was purchased was built in 1999.

Heating and cooling costs were the most important environmental features
for recent home buyers, with 84% finding these features at least somewhat
important.

For buyers 36 years and younger, commuting costs were more important
that heating and cooling costs at 39% and 31% respectively. Compared
to buyers 62 years through 70, commuting costs was listed as very
important to only 12% whereas heating a cooling accounted for 34%.

Overall, buyers expect to live in their homes for a median of 12 years,
while 18% say that they are never moving. For buyers 36 years and
younger, the expected length of time is only 10 years compare to 20
years for buyers 52 to 61 years.

At Personal Property Managers, we use all this information and all
these statistics to help our seller clients understand today’s
market and whom they are marketing to, along with the taste that today’s
buyers desire.

A cluttered home will have a negative appeal and will turn off today’s
buyers.

A home that has not been updated or has dark colors, wallpaper, older
kitchens and bathrooms will be a turn off to a whopping 92% of today’s
buyers. This is very important to understand. Today’s sellers
need to factor this into the selling price and adjust it accordingly.

The good news is that at Personal Property Managers, one call does
it all. We can help with selling a home. Downsizing and de-cluttering
it. Liquidating its contents and getting it market ready for sale.
We have a strong following of interested buyers and can help our clients
in many different home buying and selling avenues.

For more insights, tips and videos please visit our Resource
Page in the About us tab.

For more information on real estate or home downsizing please contact Nick Santoro or Joe Santoro of Personal Property Managers at 215-485-9272 or 908-368-1909. Personal Property Managers specializes in helping home owners transition from their home of many years into a new community. Personal Property Managers services Pennsylvania and New Jersey and offers downsizing services, estate sales services, home staging, discount full service real estate services via its association with EveryHome Realty. Learn more about Personal Property Managers from our recent News Stories.